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United States Steel Corporation (X) stock is on the move lower Friday afternoon following reports that President Donald Trump is resurrecting the company's potential merger agreement with Japan's Nippon Steel (NPSCY, 5401.T). The revised terms would see Nippon Steel making direct investments in US Steel operations rather than pursuing full ownership.
The $14.1 billion deal was previously blocked by the Biden administration, which aimed to maintain domestic control of US steel production.
Market Domination hosts Julie Hyman and Josh Lipton break down the details.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Angel Smith
We're also watching shares of US Steel. On a wild ride today as a drip of headlines out of the White House are driving the action. Now, earlier in the session, the stock spiked on the headline from CBS, saying that President Trump may allow the highly contentious sale of US Steel to Japan's Nippon Steel, but a short time ago, President Trump said this, and the stock sold off and was halted.
Nissan's going to be doing something very exciting about about US Steel. They'll be looking at an investment rather than a purchase, so we like the idea. US Steel is a very important company to us. It was the greatest company in the world for 15 years, many years ago, 80 years ago, and we didn't want to see that leave, and it wouldn't actually leave, but the concept psychologically, not good. So they've agreed to invest heavily in US Steel as opposed to own it.
Now, well, he did say Nissan there. It seems like he misspoke and meant Nippon steel. The back and forth over the investment and sale are about Nippon. This coming after US Steel CEO met with President Trump yesterday at the White House. So obviously a lot of back and forth here, but the idea that it wouldn't be an outright takeover, just an investment is something that has investors' heads spinning at this point.
Yeah, the context is there.
Well, yeah, and it's you've been trying to follow the headlines, you've been trying to follow the stock of letter X which has been all over the place on different reports highlights, it was green and it was back to red as he sort of kind of suggested shoot down that deal now suggesting would be more, again, he said Nissan but he meant Nippon we believe, making more of an investment is was how he was framing which he said he would find exciting in that in that degree.
Right.
We'll see if that is what
We'll see. I'm also as we discussed, I mean, you're also as you're following story, you're just watching other players too.
Exactly.
If you're watching Cleveland Cliffs for example, we're down more than 3% right now.
Yeah, great point.
